Sydney's lockout laws appear to be working; a leaked report calls for shake up of mental health services; a peak welfare body wants a crackdown on negative gearing and a CEO in the US has slashed his pay to increase wages for his employees.

The Prime Minister Tony Abbott dumps promised tax cuts for big businesses; the Victorian Premier cancels the East West Link, costing hundreds of millions of dollars; the Defence Minister Kevin Andrews refuses to name the leader of Islamic State for operational reasons and the NSW ICAC loses a High Court bid to investigate Margaret Cunneen for alleged corruption.

Tony Abbott says the federal budget has suffered a $30 billion revenue write-down because of the collapsing iron ore price, in a speech confirming the Government will not go ahead with a promised company tax cut for big businesses.

On this episode of The Drum the panel discuss former Treasurer Peter Costello's criticism of Joe Hockey, Tony Abbott's call for the states to stop bickering over GST allocations, the best way to recognise Indigenous Australians and is your character more important than your resume?

South Australian Premier Jay Weatherill raises the spectre of reintroducing state taxes rather than bowing to federal pressure to raise the rate of the GST. WA, he adds, is taking a very selfish approach to the GST carve-up.